Oxford Industries reports strong growth in sales and earnings

Oxford Industries, Inc. net sales for the full fiscal 2022 year increased 24 percent to 1.41 billion dollars, while earnings per share (EPS) on a GAAP basis increased 31 percent to 10.19 dollars and adjusted EPS increased 36 percent to 10.88 dollars compared to fiscal 2021.

The company’s net sales in the fourth quarter increased 28 percent to 382 million dollars, EPS on a GAAP basis increased to 2 dollars compared to 1.50 dollars and on an adjusted basis, EPS increased to 2.28 dollars compared to 1.68 dollars in the fourth quarter of fiscal 2021.

Commenting on the strong trading results, Tom Chubb, the company’s chairman and CEO, said: “Fiscal 2022 was highlighted by robust organic growth in all brands and all channels of distribution with sales in Tommy Bahama, our largest brand, up 22 percent, Lilly Pulitzer up 13 percent and the Emerging Brands Group up 29 percent. Our performance also benefited from Johnny Was, a fantastic brand and business we added to our portfolio in the third quarter.”

“The combination of our top-line performance, meaningful gross margin expansion and expense leverage fueled a 36 percent year-over-year increase in adjusted earnings per share to a record 10.88 dollars.”

Review of Oxford’s trading update

For the full fiscal year 2022, full-price DTC sales increased 175 million dollars or 24 percent to 898 million dollars versus fiscal 2021, including 56 million dollars of DTC sales in Johnny Was and a 16 percent aggregate increase in DTC sales in Tommy Bahama, Lilly Pulitzer and Emerging Brands.

For the fourth quarter, full-price DTC sales were 258 million dollars, including Johnny Was net sales of 38 million dollars and an 8 percent aggregate increase in full-price DTC sales in Tommy Bahama, Lilly Pulitzer and Emerging Brands.

Full-price retail sales of 487 million dollars for the year and 134 million dollars for the fourth quarter were 26 percent and 23 percent higher than respective prior-year periods. This includes full-price retail sales in Johnny Was of 26 million dollars for the 19-week period in fiscal 2022 and 17 million dollars for the fourth quarter. Full-price retail sales in Tommy Bahama, Lilly Pulitzer and Emerging Brands, in the aggregate, grew 19 percent for the year and 7 percent for the quarter.

Full-price e-commerce sales grew 22 percent to 412 million dollars for the full year and 31 percent for the fourth quarter. This includes full-price e-commerce sales in Johnny Was of 31 million dollars for the year and 21 million dollars for the fourth quarter. Full-price e-commerce sales in Tommy Bahama, Lilly Pulitzer and Emerging Brands, in the aggregate, grew 13 percent for the year and 8 percent for the quarter.

Sales from Lilly Pulitzer flash sales were 54 million dollars for the year and 18 million dollars for the quarter versus 32 million dollars and 13 million dollars in the same periods of fiscal 2021. Outlet sales were 66 million dollars for the year and 17 million dollars for the quarter, 16 percent and 10 percent increases, respectively, versus prior-year results. Both the full year and the fourth quarter of fiscal 2022 included 1 million dollars of Johnny Was outlet sales.

Wholesale sales of 282 million dollars for the year and 61 million dollars for the quarter were 22 percent and 44 percent higher, respectively, than fiscal 2021. Johnny Was contributed wholesale sales of 16 million dollars for the full year and 11 million dollars for the fourth quarter, while Lanier Apparel wholesale sales in fiscal 2021 were 25 million dollars.

Gross margin increased to 63 percent on a GAAP basis and 63.5 percent on an adjusted basis for full-year fiscal 2022. For the fourth quarter, gross margin increased to 60.8 percent GAAP and 61.5 percent adjusted.

Oxford expects 2023 sales in the range of 1.62 to 1.66 billion dollars

For fiscal 2023, the company expects net sales in a range of 1.62 billion dollars to 1.66 billion dollars compared to 1.41 billion dollars in fiscal 2022.

In fiscal 2023, GAAP EPS is expected to be between 10.86 dollars and 11.26 dollars compared to 10.19 dollars in 2022. Adjusted EPS is expected to be between 11.50 dollars and 11.90 dollars compared to fiscal 2022 adjusted EPS of 10.88 dollars.

For the first quarter of fiscal 2023, the company expects net sales to be between 405 million dollars and 425 million dollars compared to 353 million dollars in the first quarter of fiscal 2022. GAAP EPS is expected to be in a range of 3.44 dollars to 3.64 dollars compared to 3.45 dollars in the first quarter of fiscal 2022. Adjusted EPS is expected to be between 3.60 dollars and 3.80 dollars compared to 3.50 dollars in the first quarter of fiscal 2022.

The company’s board of directors declared a quarterly cash dividend of 65 cents per share, which represents an 18 percent increase over its previous quarterly dividend rate of 55 cents payable on April 28, 2023 to shareholders of record as of the close of business on April 14, 2023.